Ousted Paraguayan president placed under house arrest
Ousted Paraguayan president Santiago Peña was placed under house arrest Friday on suspicion of breach of trust, shortly after the Senate removed him from office over the collapse of a major bank tied to his government.
Paraguayan President Santiago Pena was impeached on Friday by senators over the collapse of Ueno Bank, which left nearly half of the population without access to their accounts. The bank's failure triggered widespread protests, with around three million people unable to access their money since the Central Bank took control on Tuesday.
Pena had resigned over the disaster but refused to attend the impeachment trial, citing his desire to defend himself. The Senate declared him guilty of poor performance in his duties by a vote of 44 in favor with one absence. Advance payments to affected depositors began on Thursday afternoon, with first-phase aid of up to $1,600 going to those without loans or accounts at other banks.
Ueno Bank, initially a fintech company focusing on low-income customers, grew rapidly, handling state pensions and state entities' accounts. The opposition accuses Pena of a conflict of interest, which he denies. The US Embassy expressed solidarity with the Paraguayan people. Eight Ueno executives were arrested, and prosecutors raided ITTI, a subsidiary of Pena's former company Grupo Vazquez.
The scandal has shaken the stable South American country, leading Vice-President Pedro Alliana to take over Pena's mandate until 2028.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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